Posted by
rcedsouza
17 yrs ago
I am aware that in the calculation of severance pay, in hongkong companies use mpf to off set the severence pay.
however for example i need to know that if a company has actually only contributed 10000 $ but investment gaing on that 10000 are 2000, can they use the 12000 to offset the severence payout or must they only use the 10000.
any input or reference to labur law would be much appreciated.
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dasia
17 yrs ago
rcedsouza, I have just put your question to our Payroll Dept and been told that the company can only deduct the MPF contributions.
Any gain or loss on the contributions once handled by a third party are not calculated in the severance payout.
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Not too sure about your payroll dept's answer, dasia. I found this comment on the MPFA site. I would take this to mean that it is the current value of of the employer contributions that may be offset (ie the 12,000 current value in the above example rather than the 10,000 contributed). If the 10,000 contributions had fallen to zero then it would seem pretty rough justice if 10K could still be offset from severance payments.
'Offsetting of Severance and Long Service Payments
If you are an employer, you can offset long service payment and severance payment as required under the Employment Ordinance by the accrued benefits derived from contributions you have made to the employee in the MPF scheme. You can apply to the trustee for payment of the relevant amount to you for this purpose, but only after you have paid the employee his or her due long service payment and severance payment.
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hi dive bum and the rest thanks for the input
it seems dive bum may be correct if found this Q/A on the career times web site
Q2Is the amount of MPF contributions that can be used to offset long service or severance payments exactly the same as the total amount of the monthly contributions made by the employer?
A2The amount used for offsetting long service or severance payments is the accrued benefits derived from the contribution made by the employer. That means, apart from the employer's monthly contributions, investment returns from the employer's contributions can also be used for offsetting purposes.
anyways thanks for taking time to ans my questions
hope it hels anyone else in need of information
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HI
i'd like to find the details about the condition to get back our MPF, i heard we need to wait 65, of we need to live hongkong ?
but do we loose our permanent ID if we live HK ?
if any one can help !!!!
tks
P
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As I understand it:
As an individual (rather than company) you can only claim/withdraw your MPF if you leave the country. You can only do this once.
No, leaving the country does not mean you lose your Perm ID.
If you return again to HK to work, any MPF contributions from then on cannot be withdrawn until 65 (I think age is correct) even if you were to leave HK again. Even if you left for ever.
Hope this helps
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